01 July 2011
Mr. Srinivas, Composition in VAT returns is payment of tax on the sales turnover at a coposite rate,say @5% for the Civil works contractors etc. This is a special convenience allowed to some dealers, to avoid difficulties of maitaining a detailed accounts,who opt for it. It is generally at a higher rate than normal.The whole turnover is charged a common rate without going for detils of different rates and concessions under composition. MJK
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